This is a phone post so it's not going to be as detailed as I wanted, but whatever. Let's talk about why we put poor leaders in charge.
I believe our poor leadership selection is cultural, rather than some innate flaw of human psychology. Specifically, I believe it is something we could eliminate if we had sufficient impetus. More specifically, what we have today is a millennia long trend recently tainted by democratic capitalism (yes, capitalism is partly to blame here, in case you haven't noticed our theme). However, as a long running factor in our culture, it is an especially difficult trend to reverse.
It starts with human evolution. Game theory says it is almost always better to lie; for example, if you tell others where you found food, you could have help gathering even more of it, but if you lie about where you got food, you have less risk of someone stealing all of it. All social animals lie, but humans do it surprisingly little. Beyond that, humans are naturally terrible liars: our instinctive body language is a dead giveaway, even to untrained observers. The net result is that humans evolved borderline irrational trust and trustworthiness. Nobody knows why it happened, but it did, and it's a good thing too because language is impossible otherwise.
Trust is fundamental to the way we select leaders. People naturally look to competent kin for leadership, often in a domain specific way. For example, if a group of people are hunting, the person they collectively consider the best hunter will be the leader, or the best artist when it is time to create art, etc. This is an entirely automatic, instinctive mode of self organization within a group of people. The challenge for them is that it's not always obvious to everyone who is the best, so we must rely upon specious metrics like obvious success and the body language we call confidence (a person with the most developed skills do not always express the amost confidence, or attain the greatest success). Generally these metrics work perfectly fine, but they do fall down in an especially stupid way: what I call the "Bull**** Priest".
A bull**** priest is a person who did something random, then takes credit for a totally uncorrelated result. They are full of ****, basically. But they also believe their own bull****, so they're confident about it. This is where trust fails.
You and me - we're not great at controlling the weather, but that shaman did a little dance, and then it started raining, and then he confidently explained how his dance appeased the rain gods. Clearly this guy knows what he's doing. We should obey his leadership in all matters concerning the weather and the rain gods.
This is real frickin dumb, but it's exactly how it happens.
Note, I'm not just talking about religion here. There are Bull**** Priests everywhere in our society, whenever success is sufficiently random. Finance, economic engineering, business, PUA - all Bull**** Priesthoods, stacked full of gamblers self-assured only by their survivor bias. And, as inexpert observers, we instinctively allocate far too much respect to these kinds of people given how much of their success comes from luck.
I'm getting ahead of myself, though. Let's get back to the dawn of time.
Like I hinted before, this trust heuristic - the one that gives rise to the Bull**** Priest - is actually a very good choice. It's hard to do better, and the down side isn't really that bad. A Bull**** Priest will run out of luck eventually, at which point he will be revealed as a fraud, and will lose his leadership role. In the meantime, though, a little bit of dancing never hurt anybody.
Here's the second problem: culture. Our (western) culture is strongly caste based. It's hard to see because we really don't like talking about it, and the lines have gotten a bit squiggly over the millennia, but it's there. At least as early as the Proto-Indo-European culture, and possibly much earlier, our people have been segregated into sacral, martial, and economic castes (the trifunctional hypothesis, broadly considered by experts - and this post - to be an artifact, and not a formal organizational method). In other words, people who do work, people who protect the workers, and people who are full of ****. Culture is a boon for the Bull**** Priest, because it gives them legitimacy beyond their (in-) ability to deliver. If a Bull**** Priest without cultural support does a rain dance, and it doesn't rain, the people might conclude that rain dances don't work. But with the support of culture, a failed rain dance may mean the people are impious, or at worst it means they need a more skilled rain dancer. Either way, the position of the Bull**** Priest - who, remember, is not actually doing anything of value for anyone - remains secure.
Capitalism is another way that culture preserves the station of the Bull**** Priest. For example, stock market speculators: inevitably at least some of them, regardless of any real competence, will achieve great fortune. That single random success guarantees a superior quality of life, which can be sustained at less risk, and access to lucrative opportunities that are denied to poorer (non-certified) investors. This random stoke of luck, thanks to capitalism, has turned an unexceptional gambler into a permanent fixture within his industry.
In the early PIE days, the Bull**** Priest caste was shamanic, and later became the literal Catholic Church. Today, the church has almost no power, but their caste is not gone - instead, that role is now occupied by a very different group of people (finance, in case you haven't already guessed).
The last problem I'll talk about is representative democracy, because it - along with the other factors, above - massively amplify the problem with the trust heuristic. Campaigning in a representative democracy requires a massive investment of time and money. Working people, regardless of their wealth, do not have the luxury of time or other means to seek office. Realistically speaking, it falls upon the Bull**** Priests to either seek office, or otherwise to choose the candidates via campaign donations. That doesn't mean the people want to vote for Bull**** Priests - on the contrary, most voters look at the candidates who are running, and instinctively know they are full of ****, but our culture ensures those are the only people whose names show up on the ballot.
And that's how we keep picking terrible leaders.
What can we do to fix this? Here are some ideas:
- Make it easier for normal people to run for political office, without having to be full of **** first. (GMI or similar.)
- Eliminate the cultural safety nets that are protecting the randomly successful from their inevitable failure. (Bail-outs, subsidies, granted monopolies, etc.)
- Improve general, social science, and physical science education. Fund presitigious scientific research institutions. Fund science advocacy/outreach programs. (An educated public is better at spotting people who are full of ****.)
- Pay attention to who most strongly opposes measures like the above. Those are the Bull**** Priests. You know what to do.